IIFT International Business and Management
Review Journal
group_logo
issue front

Anjali Chopra1, K. S. Ranjani2 and Soujanya Narsipur3

First Published 24 Jul 2023. https://doi.org/10.1177/jiift.221150355
Article Information Volume 1, Issue 1 June 2023
Corresponding Author:

Anjali Chopra, Department of Marketing and International Business, K J Somaiya Institute of Management, Somaiya Vidyavihar University, Mumbai, Maharashtra 400077, India.
Email: anjali.chopra@somaiya.edu

1Department of Marketing and International Business, K J Somaiya Institute of Management, Somaiya Vidyavihar University, Mumbai, Maharashtra, India

2Faculty of Finance, National Institute of Industrial Engineering, Mumbai, Maharashtra, India

3K J Somaiya Institute of Management, Somaiya Vidyavihar University, Mumbai, Maharashtra, India

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed.

Abstract

The purpose of this article is to investigate the antecedents of satisfaction of consumers with chatbots using service quality (SERVQUAL) in the South Asian context. Customer satisfaction is one of the critical attitudinal variables that may influence customer behaviour and lead to greater customer loyalty. Automated query resolutions facilitated through AI chatbots are used to enhance SERVQUAL and customer satisfaction. However, it has been observed that inability to resolve queries satisfactorily results in frustration and abandonment of the channel. To address this service deficiency, the proposed study uses the SERVQUAL scale to identify antecedents of customer satisfaction. A total of 355 usable responses were collected from consumers who used chatbot services across different sectors. Confirmatory factor analysis and structural equation modelling (AMOS 26) were employed to test the proposed model. Tangibles, assurance and efficiency were significant in explaining customer satisfaction while responsiveness and privacy were insignificant. Assurance was significant and caused dissatisfaction when perceived as absent; tangibles were significant but were no longer a differentiator; efficiency was perceived as significant and can be critical in building assurance and accelerating adoption. The findings from this study provide beneficial insights to businesses who handle large volumes of service requests for instance, digital banking applications, travel sites, e-commerce sites and educational institutions. Businesses need to focus on critical service dimensions like assurance and efficiency rather than improving the conversational ability of chatbots. This article addresses an important paradox namely poor satisfaction with chatbot services despite demand for technology-enabled services. Theoretically speaking, easy-to-use and easy-to-access technologies should result in higher engagement among consumers. However, the rapid deployment of chatbots by businesses is met with high dropout in chatbot service channel. Technology adoption has been studied widely, but this study addresses the larger issue of what could enable better customer satisfaction in an easy-to-use technology.

Keywords

AI chatbots, customer satisfaction, service quality, service delivery

References

Adam, M., Wessel, M., & Benlian, A. (2020). AI-based chatbots in customer service and their effects on user compliance. Electronic Markets, 31(2), 427–455. https://doi.org/10.1007/s12525-020-00414-7

Adhikari, K., & Paul, B. (2016). Impact of perceived service quality on customer satisfaction in United Bank of India: A perceptual study. International Journal of Innovative Research in Management Studies (IJIRMS), 1(2), 13–22.

Agbor, J. M. (2011). The relationship between customer satisfaction and service quality: A study of three service sectors in Umeå. Umeå University, Faculty of Social Sciences, Umeå, Sweden. https://www.diva-portal.org/smash/record.jsf?dswid=5116&pid=diva2%3A448657

Bandara, R., Fernando, M., & Akter, S. (2020). Addressing privacy predicaments in the digital marketplace: A power-relations perspective. International Journal of Consumer Studies, 44(5), 423–434. https://onlinelibrary.wiley.com/doi/abs/10.1111/ijcs.12576

Barbi?, D., Lu?i?, A., & Chen, J. M. (2019). Measuring responsible financial consumption behaviour. International Journal of Consumer Studies, 43(1), 102–112.

Barnes, S. J., & Vidgen, R. T. (2001). An evaluation of cyber-bookshops: The WebQual method. International Journal of Electronic Commerce, 6(1), 11–30.

Barnes, S. J., & Vidgen, R. T. (2002). An integrative approach to the assessment of e-commerce quality. Journal of Electronic Commerce Research, 3(3), 114–127.

Baruch, Y. (1999). Response rate in academic studies-A comparative analysis. Human Relations, 52(4), 421–438.

Bitner, M. J., Brown, S., & Meuter, M. L. (2000). Technology infusion in service encounters. Journal of the Academy of Marketing Science, 28(1), 138–149.

Bitner, M. J., Zeithaml, V. A., & Gremler, D. D. (2010). Technology’s impact on the gaps model of service quality. In P. P. Maglio, C. A. Kieliszewski, & J. C. Spohrer (Eds.), Handbook of service science (pp. 197–218). Springer.

Blut, M., Wang, C., Wünderlich, N. V., & Brock, C. (2021). Understanding anthropomorphism in service provision: A meta-analysis of physical robots, chatbots, and other AI. Journal of the Academy of Marketing Science, 49(4), 632–658.

Cai, S., & Jun, M. (2003). Internet users’ perceptions of online service quality: A comparison of online buyers and information searchers. Managing Service Quality: An International Journal, 13(6), 504–519.

Chopra, A., & Ranjani, K. S. (2020). Adoption of digital transaction model by micro enterprises to target millennials in India: An exploratory study. Social Business, 10(4), 411–434.

Chung, M., Ko, E., Joung, H., & Kim, S. J. (2018). Chatbot e-service and customer satisfaction regarding luxury brands. Journal of Business Research, 117, 587–595. https://doi.org/10.1016/j.jbusres.2018.10.004

Collier, J. E., & Kimes, S. E. (2013). Only if it is convenient: Understanding how convenience influences self-service technology evaluation. Journal of Service Research, 16(1), 39–51.

Collier, J. E., & Sherrell, D. L. (2010). Examining the influence of control and convenience in a self-service setting. Journal of the Academy of Marketing Science, 38(4), 490–509.

Cox, J., & Dale, B. G. (2001). Service quality and e-commerce: An exploratory analysis. Managing Service Quality: An International Journal, 11(2), 121–131.

Crolic, C., Thomaz, F., Hadi, R., & Stephen, A. T. (2022). Blame the bot: Anthropomorphism and anger in customer–chatbot interactions. Journal of Marketing, 86(1), 132–148.

Cui, C. C., Lewis, B. R., & Park, W. (2003). Service quality measurement in the banking sector in South Korea. International Journal of Bank Marketing, 21(4), 191–201.

Dabholkar, P. A., Shepherd, C. D., & Thorpe, D. I. (2000). A comprehensive framework for service quality: An investigation of critical conceptual and measurement issues through a longitudinal study. Journal of Retailing, 76(2), 139–173.

Deloitte. (2017, June). Conversational chatbots - Let’s Chat. Retrieved March 2020, from https://www2.deloitte.com/content/dam/Deloitte/in/Documents/strategy/in-strategy-innovation-conversational-chatbots-lets-chat-final-report-noexp.pdf

Deloitte. (2018, March). Chatbots point of view. https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/deloitte-analytics/deloitte-nl-chatbots-moving-beyond-the-hype.pdf

Dietvorst, B. J., Simmons, J. P., & Massey, C. (2015). Algorithm aversion: People erroneously avoid algorithms after seeing them err. Journal of Experimental Psychology: General, 144(1), 114–126.

Epley, N., Waytz, A., & Cacioppo, J. T. (2007). On seeing human: A three-factor theory of anthropomorphism. Psychological Review, 114(4), 864–886.

Feng, Y., & Xie, Q. (2019). Privacy concerns, perceived intrusiveness, and privacy controls: An analysis of virtual try-on apps. Journal of Interactive Advertising, 19(1), 43–57. https://doi.org/10.1080/15252019.2018.1521317

Fitzsimmons, J. A., Fitzsimmons, M. J., & Bordoloi, S. (2008). Service management: Operations, strategy, and information technology (p. 4). McGraw-Hill.

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3), 382–388.

Ghost, F. H., & Gnanadhas, M. E. (2011). Impact of service quality in commercial banks on the customers satisfaction: An empirical study. International Journal of Multidisciplinary Research, 1(6), 19–37.

Golder, P. N., Mitra, D., & Moorman, C. (2012). What is quality? An integrative framework of processes and states. Journal of Marketing, 76(4), 1–23.

Gronroos, C. (1988). Service quality: The six criteria of good perceived service. Review of Business, 9(3), 10.

Hair, J. F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414–433.

Han, M. C. (2021). The impact of anthropomorphism on consumers’ purchase decision in chatbot commerce. Journal of Internet Commerce, 20(1), 46–65.

Han, S., & Yang, H. (2018). Understanding adoption of intelligent personal assistants: A parasocial relationship perspective. Industrial Management & Data Systems, 118(3), 618–636.

Hernon, P., & Nitecki, D. A. (2001). Service quality: A concept not fully explored. Library Trends, 49(4), 687–708.

Holzwarth, M., Janiszewski, C., & Neumann, M. M. (2006). The influence of avatars on online consumer shopping behavior. Journal of Marketing, 70(4), 19–36.

Howard, M., & Worboys, C. (2003). Self-service–a contradiction in terms or customer-led choice? Journal of Consumer Behaviour: An International Research Review, 2(4), 382–392. https://doi.org/10.1002/cb.115

Huang, M.-H., Li, X., & Zeng, X. (2007, September). Service quality in Web 2.0 electronic commerce: An integrative perspective from typical service and technique-adoption [Paper presentation]. In 2007 International Conference on Wireless Communications, Networking and Mobile Computing (pp. 3258–3261). IEEE. http://doi.org/10.1109/WICOM.2007.807

Huang, M.-H., & Rust, R. T. (2021). Engaged to a robot? The role of AI in service. Journal of Service Research, 24(1), 30–41.

Jain, D., & Gaur, P. (2012). Perception of customers towards the quality of services provided by the banking sector: An empirical study. International Journal of Management Sciences, 1(3), 1–20.

Kant, R., & Jaiswal, D. (2017). The impact of perceived service quality dimensions on customer satisfaction. International Journal of Bank Marketing, 35(3), 411–430

Kar, A. K. (2020). What affects usage satisfaction in mobile payments? Modelling user generated content to develop the ‘digital service usage satisfaction model’. Information Systems Frontiers, 23(5), 1341–1361.

Kim, S., Chen, R. P., & Zhang, K. (2016). Anthropomorphized helpers undermine autonomy and enjoyment in computer games. Journal of Consumer Research, 43(2), 282–302.

Kwak, H., Puzakova, M., & Rocereto, J. F. (2015). Better not smile at the price: The differential role of brand anthropomorphization on perceived price fairness. Journal of Marketing, 79(4), 56–76.

Lai, I. K., Hitchcock, M., Yang, T., & Lu, T. W. (2018). Literature review on service quality in hospitality and tourism (1984-2014): Future directions and trends. International Journal of Contemporary Hospitality Management, 30(1), 114–159.

Lee, H.-J., & Yang, K. (2013). Interpersonal service quality, self-service technology (SST) service quality, and retail patronage. Journal of Retailing and Consumer Services, 20(1), 51–57. https://doi.org/10.1016/j.jretconser.2012.10.005

Lee, K., Joshi, K., & Bae, M. (2009). A cross-national comparison of the determinants of customer satisfaction with online stores. Journal of Global Information Technology Management, 12(4), 25–51.

Lei, S. I., Shen, H., & Ye, S. (2021). A comparison between chatbot and human service: Customer perception and reuse intention. International Journal of Contemporary Hospitality Management, 33(11), 3977–3995. https://doi.org/10.1108/IJCHM-12-2020-1399

Li, L., Lee, K. Y., Emokpae, E., & Yang, S. B. (2021). What makes you continuously use chatbot services? Evidence from Chinese online travel agencies. Electronic Markets, 31(3), 575–599.

Li, X., & Sung, Y. (2021). Anthropomorphism brings us closer: The mediating role of psychological distance in User–AI assistant interactions. Computers in Human Behavior, 118, 106680. https://doi.org/10.1016/j.chb.2021.106680

Lu, Y., Papagiannidis, S., & Alamanos, E. (2018). Internet of things: A systematic review of the business literature from the user and organisational perspectives. Technological Forecasting and Social Change, 136, 285–297. https://doi.org/10.1016/j.techfore.2018.01.022

Madu, C. N., & Madu, A. A. (2002). Dimensions of e?quality. International Journal of Quality & Reliability Management, 19(3), 246–258.

Mathur, M. B., & Reichling, D. B. (2016). Navigating a social world with robot partners: A quantitative cartography of the Uncanny Valley. Cognition, 146, 22–32. https://doi.org/10.1016/j.cognition.2015.09.008

Meuter, M. L., Bitner, M. J., Ostrom, A. L., & Brown, S. W. (2005). Choosing among alternative service delivery modes: An investigation of customer trial of self-service technologies. Journal of Marketing, 69(2), 61–83.

Meuter, M. L., Ostrom, A. L., Roundtree, R. I., & Bitner, M. J. (2000). Self-service technologies: Understanding customer satisfaction with technology-based service encounters. Journal of Marketing, 64(3), 50–64. https://doi.org/10.1509/jmkg.64.3.50.18024

Meyer-Waarden, L., Pavone, G., Poocharoentou, T., Prayatsup, P., Ratinaud, M., Tison, A., & Torné, S. (2020). How service quality influences customer acceptance and usage of chatbots. Journal of Service Management Research, 4(1), 35–51.

Minge, M., & Thüring, M. (2018). Hedonic and pragmatic halo effects at early stages of user experience. International Journal of Human-Computer Studies, 109, 13–25. https://doi.org/10.1016/j.ijhcs.2017.07.007

Mollen, A., & Wilson, H. (2010). Engagement, telepresence and interactivity in online consumer experience: Reconciling scholastic and managerial perspectives. Journal of Business Research, 63(9–10), 919–925. http://doi.org/10.1016/j.jbusres.2009.05.014

Mozafari, N., Weiger, W. H., & Hammerschmidt, M. (2020). The chatbot disclosure dilemma: Desirable and undesirable effects of disclosing the non-human identity of chatbots [Paper presentation]. In Proceedings of ICIS.

Murtarelli, G., Gregory, A., & Romenti, S. (2021). A conversation-based perspective for shaping ethical human–machine interactions: The particular challenge of chatbots. Journal of Business Research, 129, 927–935. https://doi.org/10.1016/j.jbusres.2020.09.018

Naumann, E., & Giel, K. (1995). Customer satisfaction measurement and management: Using the voice of the customer. Van Nostrand Reinhold.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41–50.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12–40.

Parasuraman, A., Zeithaml, V. A., & Malhotra, A. (2005). E-S-QUAL: A multiple-item scale for assessing electronic service quality. Journal of Service Research, 7(3), 213–233.

Patterson, Z., & McEachern, M. G. (2018). Financial service providers: Does it matter if banks don’t behave ethically? International Journal of Consumer Studies, 42(5), 489–500, https://onlinelibrary.wiley.com/doi/10.1111/ijcs.12452

Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63, 539–569. https://doi.org/10.1146/annurev-psych-120710-100452

Poon, W. C., & Lee, C. K. C. (2012). E-service quality: An empirical investigation. Journal of Asia-Pacific Business, 13(3), 229–262.

Press, G. (2019, October 2). AI stats news: 86% of consumers prefer humans to chatbots. Forbes. https://www.forbes.com/sites/gilpress/2019/10/02/ai-stats-news-86-of-consumers-prefer-to-interact-with-a-human-agent-rather-than-a-chatbot/#394728472d3b

Ranganathan, C., & Ganapathy, S. (2002). Key dimensions of business-to-consumer web sites. Information & Management, 39(6), 457–465.

Rasty, F., Mirghafoori, S. H., Ardekani, S. S., & Ajdari, P. (2020). Trust barriers to online shopping: Investigating and prioritizing trust barriers in an intuitionistic fuzzy environment. International Journal of Consumer Studies, 45(5), 1030–1046. https://onlinelibrary.wiley.com/doi/10.1111/ijcs.12629

Reynolds, N., & Diamantopoulos, A. (1998). The effect of pretest method on error detection rates: Experimental evidence. European Journal of Marketing, 32(5/6), 480–498. https://doi.org/10.1108/03090569810216091

Schweitzer, F., Belk, R., Jordan, W., & Ortner, M. (2019). Servant, friend or master? The relationships users build with voice-controlled smart devices. Journal of Marketing Management, 35(7–8), 693–715.

Seth, N., Deshmukh, S. G., & Vrat, P. (2006). SSQSC: A tool to measure supplier service quality in supply chain. Production Planning & Control, 17(5), 448–463.

Sheth, H. (2019, July 25). How India’s corporates are using chatbots to drive efficiencies. Hindu Business Line. https://www.thehindubusinessline.com/info-tech/how-indias-corporates-are-using-chatbots-to-drive-efficiencies/article28709338.ece

Soderlund, M. (2021). The robot-to-robot service encounter: An examination of the impact of inter-robot warmth. Journal of Services Marketing, 35(9), 15–27. https://doi.org/10.1108/JSM-01-2021-0006

Soderlund, M. (2022). Service robots with (perceived) theory of mind: An examination of humans’ reactions. Journal of Retailing and Consumer Services, 67, 102999. https://doi.org/10.1016/j.jretconser.2022.102999

Solnet, D., Subramony, M., Ford, R. C., Golubovskaya, M., Kang, H. J. A., & Hancer, M. (2019). Leveraging human touch in service interactions: Lessons from hospitality. Journal of Service Management, 30(3), 392–409.

Statista. (2018). Daily time spent on WhatsApp by rural Indians in 2018. https://www.statista.com/statistics/961297/india-daily-time-spent-on-whatsapp-in-rural-areas/#:~:text=As%20per%20the%20results%20of,hours%20daily%20using%20the%20app

Trivedi, J. (2019). Examining the customer experience of using banking chatbots and its impact on brand love: The moderating role of perceived risk. Journal of internet Commerce, 18(1), 91–111.

Troshani, I., Hill, S. R., Sherman, C., & Arthur, D. (2021). Do we trust in AI? Role of anthropomorphism and intelligence. Journal of Computer Information Systems, 61(5), 481–491.

United Nations. (2021). Southern Asia population. https://www.worldometers.info/world-population/southern-asia-population/#:~:text=The%20current%20population%20of%20Southern,of%20the%20total%20world%20population

Wakefield, K. L., & Blodgett, J. G. (1999). Customer response to intangible and tangible service factors. Psychology & Marketing, 16(1), 51–68.

Wamba, S. F., & Queiroz, M. M. (2021). Responsible artificial intelligence as a secret ingredient for digital health: Bibliometric analysis, insights, and research directions. Information Systems Frontiers. Advance online publication. https://doi.org/10.1007/s10796-021-10142-8

Wang, Y.-S., Lin, H.-H., & Luarn, P. (2006). Predicting consumer intention to use mobile service. Information Systems Journal, 16(2), 157–179. https://doi.org/10.1111/j.1365-2575.2006.00213.x

Waytz, A., Cacioppo, J., & Epley, N. (2010). Who sees human? The stability and importance of individual differences in anthropomorphism. Perspectives on Psychological Science, 5(3), 219–232.

Waytz, A., Heafner, J., & Epley, N. (2014). The mind in the machine: Anthropomorphism increases trust in an autonomous vehicle. Journal of Experimental Social Psychology, 52, 113–117. https://doi.org/10.1016/j.jesp.2014.01.005

White, H., & Nteli, F. (2004). Internet banking in the UK: Why are there not more customers? Journal of Financial Services Marketing, 9(1), 49–56.

Wolfinbarger, M., & Gilly, M. C. (2003). eTailQ: Dimensionalizing, measuring and predicting etail quality. Journal of Retailing, 79(3), 183–198.

Wong, I. A., & Fong, V. H. I. (2012). Development and validation of the casino service quality scale: CASERV. International Journal of Hospitality Management, 31(1), 209–217.

Wottrich, V. M., Reijmersdal, E. A. van., & Smit, E. G. (2018). The privacy trade-off for mobile app downloads: The roles of app value, intrusiveness, and privacy concerns. Decision Support Systems, 106, 44–52. https://doi.org/10.1016/j.dss.2017.12.003

Yang, Y., Liu, Y., Lv, X., Ai, J., & Li, Y. (2022). Anthropomorphism and customers’ willingness to use artificial intelligence service agents. Journal of Hospitality Marketing & Management, 31(1), 1–23.

Yarimoglu, E. K. (2014). A review on dimensions of service quality models. Journal of Marketing Management, 2(2), 79–93.

Yen, C., & Chiang, M. C. (2021). Examining the effect of online advertisement cues on human responses using eye-tracking, EEG, and MRI. Behavioural Brain Research, 402, 113128. https://doi.org/10.1016/j.bbr.2021.113128

Yoo, B., & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52(1), 1–14.

Yu, E., & Sangiorgi, D. (2018). Service design as an approach to implement the value cocreation perspective in new service development. Journal of Service Research, 21(1), 40–58.

Zeithaml, V. A., Parasuraman, A., & Malhotra, A. (2005). A conceptual framework for understanding e-service quality: Implications for future research and managerial practice. Journal of Service Research, 7, 1–21.


Make a Submission Order a Print Copy